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HomeMy WebLinkAbout2020-08-12; Housing Element Advisory Committee; ; CONFIRMATION OF SITE SELECTION METHODOLOGIES PROPOSED TO MEET THE CITY'S HOUSING OBLIGATIONS PRIOR TO INITIATING PUBLIC INPUT ON INDIVIDUAL SITESHOUSING ELEMENT ADVISORY COMMITTEE Staff Report Meeting Date: August 12, 2020 To: Housing Element Advisory Committee Members From: Don Neu, City Planner Staff Contact: Don Neu, City Planner Don. neu@carlsbadca.gov, 760-602-4612 Item No. (D Subject: Confirmation of site selection methodologies proposed to meet the city's housing obligations prior to initiating public input on individual sites. Recommended Action Receive information and provide recommendations and input on the proposed site selection methodologies that will ultimately be used to identify possible housing sites. Executive Summa Along with presentations on RHNA and site selection criteria, the committee has started to discuss approaches to identify sites that have the potential for producing housing to help satisfy the city's RHNA obligations. During the July 8 HEAC meeting, the HEAC members individually ranked the approaches, or site selection strategies, for the identification of housing sites (see Exhibit 1). These rankings were intended to update City Council on the HEAC's work and the site selection strategies preferred by the committee. Since the meeting, staff has further refined the sites inventory and the approaches for sites identification. This refinement of the methodologies warrants further committee discussion and a re- evaluation of its rankings, which is why the matter is being brought back to the committee for further consideration. A City Council workshop has been scheduled for August 27, 2020, to discuss the Housing Element Update, including confirmation of the site selection methodologies. HEAC's recommendations on the draft methodologies will be presented to the Councilmembers at that workshop. For additional information on this topic, please refer to Housing Plan Update webpage, www.carlsbadca.gov/housingplan. Background As previously reported, pursuant to state law, cities and counties in California are required to update their respective Housing Element. The Housing Element is designed to provide a coordinated and comprehensive strategy for promoting the production of safe, decent and affordable housing for varying income -levels within the community for the next eight -year period, which will cover April 2021 through April 2029. For this housing period, which the state refers to as the sixth housing cycle, the city's share of the Regional Housing Needs Assessment (RHNA) is 3,873 housing units, broken down by income -level. The city must demonstrate to the State Department of Housing and Community Development (HCD) that it has adequate land capacity to accommodate the assigned RHNA units. Housing Element Advisory Committee Agenda Item 1 August 12, 2020 Page 2 City's Housing Allocation (Gross) On July 10, 2020, the San Diego Association of Governments (SANDAG) Board of Directors adopted the final Regional Housing Needs Assessment Plan for the San Diego region. The plan accepted HCD's determination of 171,685 housing units needed in the region. Based on a SANDAG-developed methodology, those units were allocated to the 18 cities and the unincorporated county. The City of Carlsbad's share of the RHNA allocation for the sixth housing cycle is as follows: 2021-2029 RHNA ALLOCATION• Very Low Low Moderate Moderate + Total 1,311 784 749 1,029 3,873 When compared to the city's RHNA allocation for the fifth (current) housing cycle (2013-2021), which is reflected in the chart below, the city was assigned 27% (1,126) fewer total housing units for this upcoming housing cycle. 2013-2021 RHNA ALLOCATION BY INCOME Very Low Low Moderate Moderate + Total 912 693 1,062 2,332 4,999 Upon closer review, this reduction occurred in categories reserved for moderate and above -moderate ("moderate +" in the chart) income families, which is typically associated with single-family and lower density development. When comparing RHNA units assigned to the low and very -low income categories for the two cycles, the city was assigned a 31% (490) increase in assigned housing units, which is typically associated with higher density development such as apartments and condominiums. City's Housing Allocation (Net) Once the RHNA has been assigned, the first step in updating a Housing Element involves assessing the existing element to determine if the plan already has capacity to accommodate all or a portion of the assigned housing units. The chart below shows the number of housing units, by income category, that staff estimates can be carried over to the new housing plan. This is only an estimate as HCD has final say as to whether a site(s) can be counted for future housing. This determination is made once a draft of the Housing Element is submitted for review. Further, note that the very low and low-income categories are combined and represented by "V/Low" in the chart. Housing Element Advisory Committee Agenda Item 1 August 12, 2020 Page 3 Includes planned projects, three of which propose a state density bonus or local density increase that will result in an additional 57 V/Low units and 226 moderate + units above the density allowed under current zoning. z State HCD recommends that a buffer be built into the plan in the event a site does not get built to the density planned. Staff assumed a buffer based on 15% of the RHNA. HCD recommends a buffer of 15 to 30% of the assigned RHNA (gross). • Current General Plan Relying as much as possible on the current plan is beneficial because residential development planned under an existing housing plan has already been vetted with the community and analyzed under CEQA. Also, the more units that can be carried over from the current plan to the new plan reduces the need to find other properties to rezone/up zone. The number of units reflected under this category represents vacant or underutilized sites. Underutilized sites represent those not developed to their full potential and signify opportunities for additional housing. • Planned Projects (no rezone) Per state law, development projects that are in the entitlement processes as of June 30, 2020 and anticipated to be constructed by the end of the eight -year cycle, can be counted towards the RHNA obligations for the housing plan. The units listed in this section are associated with development projects that are either approved (entitled but not built) or pending. The pending projects do NOT propose a rezone and based on current allowed General Plan densities. The exception is noted in the chart above for a few projects proposing increased densities through means other than a rezone (i.e., state density bonus). The units realized through planned projects are being identified separately as they represent a realistic view of the type and density that can or may be achieved on those respective sites. Should the projects not get approved/built, the city can still count the sites (underlying zoning) as part of its housing inventory. • Accessory Dwelling Unit In recent years, the state legislature has relaxed laws to promote the production of accessory dwelling units, which they see as a viable affordable housing choice. To help meet its RHNA Housing Element Advisory Committee Agenda Item 1 August 12, 2020 Page 4 obligations, HCD is allowing jurisdictions to assume a unit count that is three to five times average past production. HCD has advised Carlsbad to base its ADU production estimates on permitting data from 2015 and 2016, or the years just prior to passage of the first round of such encouraging legislation. The city's annual average ADU production rate for 2015 and 2016 was 25 units. For this housing cycle, staff assumed a rate that was three times the average, or 75 ADUs per year.' This assumption likely will need support in the way of proposed Housing Element programs that, for example, promote ADU awareness and education. Furthermore, ADU construction is not linked to a specific quadrant and could occur anywhere in the city's residential areas. Their development also does not count toward Growth Management Plan dwelling unit caps. Methodologies to Meet Housing Allocation With housing unit targets established, there are several options that the city can consider in order to meet its RHNA obligations. A chart identifying the methodologies is provided below. Included in the chart is HEAC's July prioritizations for reference. Exhibit 2 describes each of the six methodologies developed by staff since the HEAC's July meeting. Site selection strategies for satisfying RHINIA Considered by the HEAC on July 8 Developed by staff since July 8 1. Planned projects' 1. Assume mid -range densities 2. ADUs (@ 3x previous)' 2. Up -zone residential properties 3. Vacant (current GP)' 3. City -owned properties 4. Industrial to residential 4. Commercial to residential 5. Commercial/Other to residential 5. Industrial to residential 6. Increase residential density 6. Planned projects (proposing rezone) 7. Underutilized 'Methodologies used to determine RHNA net figures Discussion At this time, staff would like to review with the committee the information provided in this report, which will be presented to City Council later in August. Staff also requests additional discussion from committee members on their methodology rankings. For example, committee members are encouraged to emphasize why they ranked one approach higher over another and why certain approaches were placed as a greater priority. In order to bring a joint recommendation to City Council, City Staff and consultants encourage the HEAC to find a consensus on the best housing approach or approaches. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for viewing at least 72 hours prior to the meeting date. 1 HCD permits a jurisdiction to count toward its RHNA obligations the units it estimates will be produced over a nearly nine-year projection period. In the San Diego region, this period began June 30, 2020 and will end April 15, 2029. Housing Element Advisory Committee Agenda Item 1 August 12, 2020 Page 5 Exhihits 1. July 8, 2020 Committee member rankings on RHNA site selection strategies 2. Site selection strategies developed by staff since the July 8 HEAC meeting 1 2 3 4 5 6 7 Housing Element Advisory Committee Site Selection Strategy Ranking J u ly 8, 2020 Luna Proulx Barnett Evans Novak Perez Sachs Streicher Weis 1 1 1 5 1 3 1 4 6 4 4 3 3 7 3 5 7 3 7 7 4 4 4 3 4 2 6 6 6 5 5 2 1 7 3 4 7 1 6 1 5 6 5 2 5 6 7 7 3 5 2 5 2 2 2 6 2 OPTIONS: 1 Planned Projects 2 ADUs (@ 3X previous) 3 Vacant (current GP) 4 Industrial to R-30 designation 5 Commercial/Other to R-30 designation 6 Increase Residential Density 7 Underutilized COMMITTEE RANKING 1 3 4 7 6 5 2 UPDATED Site Selection Methodologies Exhibit 2 1. Assume Midrange Densities for high residential densities The General Plan assigns residential properties a range of densities that can be constructed. For example, the R- 30 land use designation allows a residential density range of 23-30 du/ac. Under the current Housing Element, staff assumed that developers would develop at the lower density range (minimum, or 23 du/ac). This methodology suggests that by requiring developers to build at the middle of the residential density range instead of at the minimum (26.5 vs. 23 du/ac), the city could generate additional units that could be applied towards our very low and low-income RHNA allocations. o Benefits No change in zoning required; approach successfully applied to the city's Housing Element for the fourth housing cycle (2005-2013). o Drawbacks Site and/or design constraints may frustrate the ability to achieve midrange density 2. Up -zone existing residentially zoned properties The current General Plan assigns more than enough sites to meet our above -moderate income category. One methodology is to up zone vacant or underutilized residential properties that have lower zoned densities to accommodate higher density development. Under this methodology, the existing designations of the vacant and underutilized sites would change as follows: o R-4 (0-4 du/ac) to R-23 (15-23 du/ac); or R-30 (23-30 du/ac) o R-15 (8 to 15 du/ac) to R-23 (15-23 du/ac); R-30 (23-30 du/ac); or, R-35 (30-35 du/ac) o R-23 (15-23 du/ac) to R-30 (23-30 du/ac); R-35 (30-35 du/ac); or, R-40 (35-40 du/ac) Those properties affected by this methodology are primarily concentrated in the Northeast Quadrant near El Camino Real and College Boulevard (Sunny Creek/Local Facility Management Zone 15) and in the Southwest Quadrant, including the Ponto area. o Benefits Affects existing residential zoned properties; helps balance the types (income levels) of housing to be built in the city; additional density could make infrastructure completion more feasible (LFMZ 15). o Drawbacks To achieve a density of 35 or 40 du/ac, building size will likely need to be four to five stories; introduces higher density development in lower density neighborhoods; and, while this methodology increases low income unit counts, it decreases above moderate unit counts. 3. City -owned properties The city currently owns or holds interest in a few properties that could be rezoned to allow for future lower income housing. Examples include the city -owned industrial/office lots on College Boulevard near Palomar Point Way and the (parking lot at) The Shoppes @ Carlsbad. It should be noted that on June 15, 2020, Brookfield Properties, the Description of site selection strategies developed by staff since the July 8 HEAC meeting August 12, 2020 Page 2 current owners of the Shoppes @ Carlsbad, informed the city of their interest in repurposing the shopping center to allow a mixed -use development. o Benefits Vacant, city -owned property; results in a higher density project with higher percentage of dedicated affordable units; provides housing near job centers and transit corridors. o Drawbacks Residential use inconsistent with 2017 Real Estate Strategic Plan; property is not always convenient to neighborhood goods and services 4. Convert commercial properties to high density residential While the city must plan for commercial and retail growth to serve the additional housing growth, there are a few properties in the city that are currently zoned for commercial use that could feasibly be rezoned to accommodate higher density residential development. Specifically, the vacant commercially -designated portion of property on the northeast corner of College Boulevard and El Camino Real (known as the Walmart site), a cluster of small, vacant parcels in the Ponto area, and a commercial site partially improved with a parking lot along Calle Barcelona opposite The Forum Carlsbad shopping center. o Benefits Sites are generally close to jobs and neighborhood goods and services. o Drawbacks Removal of land designated for commercial services could result in loss of tax revenue; neighborhood conveniences and could potentially cause increase in VMT for surrounding vacant residential lots. 5. Convert select industrial properties to higher density residential Under the current general plan, there are several industrial lots that have remained vacant since their original grading 10-13 years ago. Many of the sites are east and west of Melrose Drive and one underutilized site along Cougar Drive and Palmer Wayjust east of El Camino Real. Together, the sites total almost 50 acres. Another methodology to achieve RHNA targets is to rezone some of these industrial lots to allow high density residential development. This option would re -designate certain properties from Planned Industrial to a high density residential designation, thereby generating units that can count towards our very low- and low-income RHNA allocations. o Benefits Virtually all sites being considered are vacant and unconstrained, thereby resulting in a high number of units; provides housing near job centers and transit corridors o Drawbacks Increases vehicle miles traveled (VMT); potential for residential uses in industrial areas; not always convenient to neighborhood goods and services. 6. Consider other Planned Projects (proposed or potential rezone) Not reflected in the planned projects in the section above are active proposals that could contribute to meeting the city's RHNA need. While each has formally filed development applications, they are not counted as part of the Description of site selection strategies developed by staff since the July 8 HEAC meeting August 12, 2020 Page 3 planned projects above, however, because they seek land use changes or propose to residentially develop commercial land. o Benefits Actual applications reflecting housing type and density that can be achieved on site o Drawbacks Projects require a rezone; if projects are denied, city loses units.